CNS Pharma acquires global rights for brain cancer drug

Shares of US biotech CNS Pharmaceuticals (Nasdaq: CNSP) gained 4.1% to $4.33 yesterday, after revealing that it has completed an agreement with Houston Pharmaceuticals Inc (HPI) to obtain the rights to a worldwide, exclusive royalty-bearing, license for the chemical compound commonly known as berubicin.

CNS' licensing agreement with HPI grants the company the exclusive right to develop certain patented chemical compounds for use in the treatment of cancer globally. Financial terms of the deal were not disclosed. In its agreement with HPI, the company acquired multiple US patents for berubicin. CNS intends to apply for orphan drug status for berubicin with the Food and Drug Administration for the treatment of malignant glioma.

"We believe our acquisition of the rights to berubicin represents an important milestone in our pursuit to develop therapies for the treatment of glioblastoma, a type of brain cancer which is currently considered incurable," stated CNS chief executive John Climaco, adding: "Our agreement with HPI expands our IP protection and provides us with developmental protection worldwide while we seek orphan drug status. We are excited to continue the clinical development of berubicin and believe its promising tolerability and efficacy results are a testament to its therapeutic potential as a novel anthracycline agent."